Regulatory changes and funding pressures have led to the “disturbing statistic” that more than 42 per cent of residential facilities are operating at loss, StewartBrown says in its half-yearly report on the financial performance of the aged care sector.

The proportion of aged care facilities operating at a loss has increased by more than 11 per cent over 12 months with those in rural and remote areas faring the worst, StewartBrown’s year-end report on the financial performance of the aged care sector shows.

The home care sector has experienced a more than six per cent decline in profitability over the last year as providers continue to accumulate a growing mountain of unspent funds, a key financial report has found.

The proportion of aged care facilities reporting a loss has grown from 34 to 41 per cent in six months, according to StewartBrown’s latest benchmarking report, which found an increasing number of financially vulnerable facilities.